Playbook / Lessons / First customers: the offer, the price
Cash-flow businessCharge more when losing a client would not hurt
In a written-up conversation with Ramit Sethi, McKenzie argues that consultants and small software sellers usually charge less than they could. In a note he adds, he lists plain situations where the answer is to raise your rate, such as being booked near capacity or having a product business that partly pays your bills. The page also asks why people undercharge even when they say they know they should charge more.
“If losing a client would not meaningfully impact your standard of living, charge more.”— Patrick McKenzie, Ramit Sethi and Patrick McKenzie On Why Your Customers Would Be Happier If You Charged More, Sep 2012
Do this
Quote your next prospect a price one clear step above your usual rate this week and see whether they accept it.